With projected continued growth into 2025, global semiconductor sales hit a record $627.6B in 2024, driven by strong demand in AI and automotive. Regionally, Europe faces a continuous decline.
The global semiconductor sales reached a record-breaking $627.6 billion in 2024, marking a 19.1 per cent increase from the previous year’s total of $526.8 billion. According to a report by the Semiconductor Industry Association (SIA), the market reached its highest-ever sales figure in 2024, surpassing the $600 billion milestone for the first time.
In the fourth quarter of 2024, sales totalled $170.9 billion, reflecting a 17.1 per cent year-on-year (YoY) rise and a 3 per cent growth over the third quarter of 2024. However, in the monthly tally, December 2024 saw global sales of $57.0 billion, a slight decrease of 1.2 per cent from November 2024.
SIA, which represents nearly all of the US semiconductor industry by revenue and almost two-thirds of non-U.S. chip firms, highlighted that the global semiconductor projections for 2025 suggest continued double-digit growth.
Regionally, the month-to-month sales data for December 2024 showed a mixed trend across different regions. The Americas recorded a 3.2 per cent increase, rising from $19.43 billion to $20.05 billion, indicating strong demand in the region. However, Europe (-6.4 per cent), Japan (-4.7 per cent), and China (-3.8 per cent) witnessed declines, suggesting weaker semiconductor sales. The Asia Pacific/All Other category also saw a slight drop of 1.4 per cent.
The YoY comparison presented a much stronger performance, especially for the Americas, which surged 56.3 per cent, rising from $12.83 billion in December 2023 to $20.05 billion in December 2024. This substantial growth could indicate increasing demand for technology, possibly fuelled by AI, automotive, or industrial applications.
On the contrary, Europe (-8.6 per cent) showed a notable decline, while Japan (4.1 per cent) and China (2.6 per cent) posted marginal growth. The Asia Pacific/All Other category saw a 7.6 per cent increase.
The three-month moving average represented a steady upward trend, with total sales growing by 3 per cent from $55.32 billion to $56.97 billion between July-September and October-December 2024. The Americas again led the growth with a 16.3 per cent increase, reinforcing its dominance in the market.
Meanwhile, Europe (-6.0 per cent), Japan (-5.6 per cent), and China (-3.2 per cent) showed declines, consistent with their month-to-month performance. The Asia Pacific/All Other market experienced only a 1.0 per cent drop, indicating stability.
Furthermore, in 2024, specific product categories saw notable growth. Logic products led the market with sales of $212.6 billion, followed by memory products, which surged by 78.9 per cent to reach $165.1 billion. DRAM products, a subset of memory, recorded the largest growth of any category, with an 82.6 per cent increase in sales.
Looking ahead, the SIA stressed the projected expansion of semiconductor manufacturing in the US, with plans to triple its domestic chip production capacity by 2032, reinforcing the nation’s position in the global supply chain and meeting increasing demand.
